JAZZ vs. STVN: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Medical - Drugs sector have probably already heard of Jazz Pharmaceuticals (JAZZ) and Stevanato Group (STVN). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Jazz Pharmaceuticals has a Zacks Rank of #2 (Buy), while Stevanato Group has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JAZZ likely has seen a stronger improvement to its earnings outlook than STVN has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
JAZZ currently has a forward P/E ratio of 9.30, while STVN has a forward P/E of 29.71. We also note that JAZZ has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STVN currently has a PEG ratio of 7.28.
Another notable valuation metric for JAZZ is its P/B ratio of 2.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, STVN has a P/B of 4.58.
Based on these metrics and many more, JAZZ holds a Value grade of A, while STVN has a Value grade of C.
JAZZ is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JAZZ is likely the superior value option right now.
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Jazz Pharmaceuticals PLC (JAZZ) : Free Stock Analysis Report
Stevanato Group S.p.A. (STVN) : Free Stock Analysis Report
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